Fast-paced, competitive, high-pressure… These are just a few terms that describe the landscape of business. There are those who fold and others who forge onward. The one defining characteristic setting these types of people apart? Resilience.
The American Psychological Association (APA) talks about resilience as “successfully adapting” to challenging experiences. Humans adapt to change by default. When it’s negative, we call it maladaptive. It’s getting through the rough patches but not really having anything of substance to show for it.
But when you get it right, it’s called thriving. It means you’ve exhibited definitive areas of personal growth that’ll stand you in good stead from that point on.
Why Resilience in Business Matters
It’s a universal truth that people will face obstacles and challenges in business. There are no number of qualifications, contacts in high places, or fail-safe strategies that make you exempt.
Markets will have downturns, there will be legal issues and uncertainties. A study conducted in 2023 by McKinsey & Company found that businesses prioritizing strategies for resilience far outperformed their competitors in times of economic turmoil.
Some of the world’s most successful leaders got to where they are not by never failing, but by never letting failures define their journey.
Key Traits of Resilient Leaders
Being resilient in the face of adversity is a learned skill. It involves embracing change, taking informed risks, and continuously learning to improve on where you were previously.
But if it were as simple as developing a skill, the world would be filled with hugely successful companies helmed by vastly resilient leaders. The fact that this isn’t the case proves how resilience discriminates.
People have to possess certain qualities to ensure resilience manifests the way it should:
- Emotional Intelligence (EQ) The maturity and capacity to maintain composure and effectively manage stress in tough situations.
- Adaptability The ability to pivot as the need arises, and not resist change.
- Decisiveness The foresight to quickly analyze issues and take fast action in the direction of forward momentum.
- Accountability Taking responsibility for mistakes and learning from them.
- Future-Focused Success is only sustainable when underlined by an unshakable long-term vision.
Overcoming Potential Challenges
Businesses of all sizes are affected by one of the biggest tests of resilience there is—unexpected legal or financial problems. It’s commonly these situations that determine whether a business will survive or not.
This is especially true for companies operating in industries that are strictly controlled by regulations and policies. For instance, the Suboxone lawsuits are targeting large pharmaceutical companies.
Complaints have been filed in light of severe oral health side effects that have been attributed to using the drug, namely tooth decay. TorHoerman Law states that rightful compensation should be sought for all those who’ve experienced dental injury after using Suboxone, especially if they weren’t made aware of the risk involved.
The volume of cases is a harsh signifier of how much the pharmaceutical companies stand to lose because of their oversight in failing to provide clear warnings about the drug.
The key to long-term success in business thus partly lies in adequate preparation for potential liabilities. It starts with identifying what these are in your industry, then understanding how it could affect your business.
Resilient leadership in this case will involve making critical decisions related to the future of compliance and processes, mitigating brand recovery, and minimizing financial losses.
How to Build Resilience in Business Strategy
Resilient leaders don’t only embody this trait on a personal level—they imbue the entire business with it. And it all begins with strategy.
According to Fast Company, resilient strategy in business can be determined by two core metrics of time—how quickly a business can bounce back from disruptive setbacks and how long it can survive before reaching its ultimate end.
In order to be effective in your resilience goals, your recovery time needs to be shorter than your survival time period. These are a few factors that serve that mindset:
Crisis Management
Assume the best and prepare for the worst. It’s an old adage that holds true. Always anticipate what could possibly happen and plan for it accordingly.
Supply chain issues, legal duties, disruptions to manufacturing, and economic uncertainty are a few examples of what businesses regularly face.
Core Team Strength
Make sure the team driving your company’s success is equipped with the necessary skills and vision. These people should essentially be capable of mirroring your input in order to achieve optimal results.
Financial Stability
Manage unexpected costs with emergency reserves only. This will safeguard the bulk of your equity from unplanned issues.
Be sure to diversify revenue streams so that you’re not totally dependent on only one source of income.
Planning Supports Purpose
The world of business will always be unpredictable. And those who rise to the challenge by showcasing accountability, adaptability, and long-term vision will always be successful at navigating those situations.
People often mistake success for being the end result of something, when in fact it’s all about how well you’ve prepared for the journey of getting there.
Let’s chat.